Business, 19.03.2020 17:10 jessebeck0805
Rover Corporation would like to transfer excess cash to its sole shareholder, Aleshia, who is also an employee. Aleshia is in the 24% tax bracket, and Rover is subject to a 21% rate. Because Aleshia's contribution to the business is substantial, Rover believes that a $135,600 bonus in the current year is reasonable compensation and should be deductible by the corporation. However, Rover is considering paying Aleshia a $135,600 dividend because the tax rate on dividends is lower than the tax rate on compensation.
Answer the following questions to determine whether Rover is correct in believing that a dividend is the better choice.
a. Regarding taxes, which would benefit Aleshia the most?
The $135,600 dividend because after taxes she would have $ from the dividend and $ from the bonus.
b. Regarding taxes, which would benefit Rover Corporation the most?
The $135,600 bonus because it would save Rover $ in taxes.
c. Considering the two parties together, which alternative would provide the most overall tax savings?
The $135,600 bonus because when the overall effect to both the corporation and the shareholder are considered the net tax savings is $.
Answers: 2
Business, 22.06.2019 11:00, roseemariehunter12
In each of the following cases, find the unknown variable. ignore taxes. (do not round intermediate calculations and round your answers to the nearest whole number, e. g., 32.) accounting unit price unit variable cost fixed costs depreciation break-even 20,500 $ 44 $ 24 $ 275,000 $ 133,500 44 4,400,000 940,000 8,000 75 320,000 80,000
Answers: 3
Business, 22.06.2019 13:40, dathanboyd
Jacob is a member of wcc (an llc taxed as a partnership). jacob was allocated $155,000 of business income from wcc for the year. jacob’s marginal income tax rate is 37 percent. the business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional medicare tax. (round your intermediate calculations to the nearest whole dollar a) what is the amount of tax jacob will owe on the income allocation if the income is not qualified business income? b) what is the amount of tax jacob will owe on the income allocation if the income is qualified business income (qbi) and jacob qualifies for the full qbi duduction?
Answers: 2
Business, 22.06.2019 17:00, HourlongNine342
Serious question, which is preferred in a business? pp or poopoo?
Answers: 1
Business, 22.06.2019 19:10, XOsam
Coca-cola was primarily known for its core competencies in marketing, bottling, and distributing aerated drinks. however, with the success of gatorade, coca-cola developed competencies in the development and marketing of its own sports drink, powerade. which of the following is true of coca-cola? a. it is leveraging existing core competencies to improve current market position. b. it is building new core competencies to protect and extend its current market position. c. it is redeploying and recombining existing core competencies to compete in markets of the future. d. it is targeting the chasm between the early adopter and early majority market segment.
Answers: 1
Rover Corporation would like to transfer excess cash to its sole shareholder, Aleshia, who is also a...
Mathematics, 16.04.2021 21:00
Mathematics, 16.04.2021 21:00
Mathematics, 16.04.2021 21:00
Physics, 16.04.2021 21:00
Mathematics, 16.04.2021 21:00
Mathematics, 16.04.2021 21:00
Chemistry, 16.04.2021 21:00